Marlboro-maker Altria is reportedly in talks to buy marijuana producer Cronos Group

Jeremy BerkeDec 4, 2018, 01.00 AM

Packs of Marlboro cigarettes are displayed for sale at a convenience store in Somerville, Massachusetts July 17, 2014.REUTERS/Brian Snyder

Altria, the tobacco giant behind well-known brands like Marlboro, is reportedly in talks to acquire Canadian marijuana producer Cronos Group, according to Reuters.

The two companies have not yet agreed to a deal, and neither confirmed a deal was in the works.

If the deal goes through, it would represent the largest tie-up between the tobacco and marijuana sectors.

The tobacco behemoth behind one of the US's most popular cigarette brands is in talks to buy a Canadian marijuana producer.

Marlboro-maker Altria is in early talks to acquire Cronos Group, a Canadian marijuana producer, according to a Reuters report.

Cronos has not yet agreed to a deal, and the talks are expected to continue for several weeks, sources familiar with the matter told Reuters. Shares in the company rose as much as 23% on the news, pushing Cronos Group's market cap close to $2 billion.

Short sellers, however, have targeted Aphria. Gabriel Grego, the founder of Quintessential Capital Management, said the company was a "black hole" on Monday at the Kase Learning Short-Selling Conference in New York.

Altria did not immediately respond to a request for comment, and a representative from Cronos declined to comment on "market rumors."